Gov. Paterson says the right things when it comes to commerce and jobs; now he can show he means, uh, business – by nudging the Public Service Commission to let a Spanish energy firm, Iberdrola, invest in New York.

A $67 billion energy giant specializing in “renewable power,” Iberdrola wants to buy a domestic firm, Energy East, for $4.5 billion – in the process, taking over two subsidiaries that deliver power upstate.

Iberdrola says it would spend up to $500 million more on projects in the state – including at least $100 million on wind-power generation in coming years. Such investment would create jobs for locals and opportunities for businesses in a region (Upstate) that badly needs them.

Yet bureaucrats at the PSC insist that Iberdola pay a $644 million cash bounty to customers in the form of discounted rates – a bribe, in other words.

They also demand that Iberdrola swear off any plans to produce electricity, even from wind turbines.

Staffers say that state policy bans utilities (like Con Ed), which hold monopolies on the electricity grid, from generating juice. They fear such firms would distribute their own power, even if it’s priced higher than a competitor’s, stiffing consumers. An exception for Iberdrola might set a dangerous precedent.

After all, Iberdrola’s interest is in wind power – which won’t produce a huge share of the state’s power anytime soon. Nor could Iberdrola stifle much competition, given that wind power can be produced only when there’s . . . wind.

Besides, “clean, renewable” energy like wind power is just what the state is trying to promote, right?

If PSC staff can’t resolve these issues, Iberdrola might walk. That would be a travesty, signaling (again) that New York simply is no place for serious investors.

Yes, the PSC should protect state interests. But that means finding a deal that both it and Iberdrola can live with.